Q1 sales down 1% at Tele2 on an organic basis

24 Apr 2019

Sweden-based Tele2 Group has reported revenue of SEK7.22 billion (USD772 million) for the first three months of 2019, up from SEK5.43 billion a year earlier, but a drop of 1% in organic terms when factoring in the merger with cableco Com Hem, which was completed in November last year. End user service revenue of SEK5.31 billion was stable on an organic basis, with a rise in mobile services offsetting a decline in the fixed sector.

Underlying EBITDA was up 82% in real terms thanks to the merger, but on a pro forma basis excluding IFRS 16 effects EBITDA climbed 8% to SEK2.34 billion. Reported net profit rose from SEK622 million in Q1 2018 to SEK769 million in the first three months of this year.

Excluding its operation in Kazakhstan, which is classed as discontinued, the Tele2 Group had 8.07 million mobile subscribers in Sweden, Latvia, Lithuania, Estonia, Croatia and Germany at the end of March 2019. The Swedish unit – including Com Hem – served 839,000 fixed broadband customers and 1.05 million pay-TV users at the same date.

Sweden, Tele2